...Ratings Driven by Sovereign Support: National Bank of Egypt's (NBE) Issuer Default Ratings (IDRs) are driven by potential support from the Egyptian authorities if needed. The Stable Outlook reflects that on the Egyptian sovereign. NBE's Viability Rating (VR) reflects the strong correlation between the bank's credit profile and that of the sovereign. This is in the context of NBE's large holdings of government debt (32% of total assets at end-2019) and significant lending to public-sector companies (about 25%), equivalent to more than 13x the bank's Common Equity Tier 1 (CET1). The operating environment has a high influence on the VR and drives the Rating Watch Negative (RWN). Rating Watch Negative: The RWN on NBE's VR reflects Fitch's expectations that the bank will face material pressure from a weaker operating environment and tightening of foreign - currency (FC) liquidity as a result of the Covid-19 pandemic. The RWN will be resolved when we have more clarity on the impact of these pressures...
